Fund gets judgment against businessman over €1.8m loan
Loan originally provided by Educational Building Society and sold by Nama to Promontoria
The Commercial Court has granted summary judgment against a businessman over a €1.8 million loan. Photograph: Bryan O’Brien/The Irish Times
The Commercial Court has granted summary judgment against a businessman over a €1.8 million loan towards the purchase of a one-acre site at Mill Lane, Shankill, Co Dublin.
Michael Shanahan, Victoria Road, Killiney, Co Dublin, was sued by Promontoria (Arrow) Ltd which says the loan now stands at just over €2 million. The exact judgment sum will be fixed later.
Mr Shanahan was sued along with Cathal Mallon, Sandymount Avenue, Dublin. The case against Mr Mallon stands adjourned.
On Thursday, Mr Justice Brian McGovern rejected arguments that Mr Shanahan had an arguable defence to the claim for summary judgment against him.
Mr Shanahan said the €1.8 million loan, originally provided by the Educational Building Society (EBS) in 2008/9 and later sold by Nama to Promontoria, was provided on the basis of limited recourse to him.
He said he would not have borrowed the money if there had been any personal risk or liability.
He claimed this was agreed at a meeting between him and two EBS representatives in June 2006.
The loan facility letter provided by EBS did not comprise the whole of the agreement between him and EBS, he argued.
Mr Justice McGovern said the defence raised “lacks credibility and flies in the face of the written documents signed and accepted by the defendant”.
For reasons of public policy, the courts will not permit oral evidence to be admissible if it was introduced for the purpose of contradicting the terms of a written agreement, he said.
The defendant had failed to raise an arguable defence to meet the threshold required in order to have the matter sent for full hearing, he ruled.